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Munich Neglect – Azov Package of Sanctions instead of Minsk Agreements

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The 55th Munich Conference on security issues featured no separate panel on Ukraine. The statement by NATO’s former Secretary General Anders Fogh Rasmussen that “from the strategic point of view, Ukraine plays a very big role” was an attempt to make the pot sweeter.

What did they say about security at the Munich Conference? In 2018, this issue, which was key for Ukraine’s leadership, was supported by the report of the former NATO Secretary General Anders Fogh Rasmussen titled “Will the UN be able to unite Ukraine?” which was prepared by the American Hudson Institute in tandem with the Rasmussen Global Foundation. The focal point of Poroshenko’s speech and Rasmussen’s report was a peacekeeping mission in  Donbass.

At Munich-2019, the Minsk Agreements, which is an issue that guarantees  European security, as distinct from the so-called “Russian threat” and “Russian intervention”, were left without attention. Instead, the participants focused on the “Russian aggression in the Kerch Strait”, which provided a reason for debate thanks to the Ukrainian provocation in November last year,  which is presented as the “Russian aggression”. The Minsk Agreements were brought up to attention by the US State Department Special Representative for Ukraine Kurt Volker, who did it in a Jesuit manner: “We are always in favor of meeting and having a discussion. Russia shows no interest or progress on this issue. In fact, they made it clear they did not want to do anything during the presidential election. The special envoy also acknowledged that the Minsk Agreements are not producing the desired effect. “They (the Minsk Agreements – DB) never worked well, as Russia refused to implement them. There has never been a ceasefire, a withdrawal of heavy weaponry, or cooperation on this issue. ”  In other words, that Kiev is doing its utmost to stall and devalue the Minsk Agreements and that the West hasn’t been demonstrating any interest in them lately is Russia’s fault.

Last year Rasmussen reported about a draft peacekeeping mission in Donbass, this year he is talking about the possibility of Russian interference in the elections: “At present, we are all keeping a close eye on the election campaign in Ukraine, because it will be a testing ground, including in terms of Russia’s possible interference in the elections. I have no doubt that Moscow will try to resort to  measures and tools that could transform and be used also during the European elections in May this year and even in course of American elections in 2020.”

“There can be no global security or security in Europe without Ukraine,” Poroshenko said in Munich.  For Ukraine, European security means repulsing the “Russian threat” through sanctions, rather than working to resolve the conflict in the south-east of the country . As said above, the Minsk Agreements and the Normandy format received no attention in Munich this time. At a bilateral meeting with German Chancellor Angela Merkel Poroshenko concentrated on measures to  “coordinate actions to implement the Azov package of sanctions and on how to prevent the Russian interference in the presidential elections in Ukraine.” Poroshenko reported that he had discussed the Azov package with the Vice President of the United States Michael Pence: “We have thoroughly considered  coordination of our actions in response to the aggression in the Kerch Strait. We have thoroughly discussed further steps to impose sanctions and coordinate these sanctions with the sanctions of the European Union. We do count on cooperation, including in the defense sector, and in the supply of all types of weapons to Ukraine as we have adopted a law that allows the Ministry of Defense to import weapons directly.” The words of Michael Pence were perceived as a triumph of Poroshenko and Ukrainian diplomacy: “Let me send a very simple message to both you and the Ukrainian people:“ We are with you. ” The recent incident in the Kerch Strait serves as a reminder of the challenges that Ukraine faces because of the Russian aggression. I want to assure you that the United States supports Ukraine. ”

Ukraine had been getting ready for the Munich Conference in earnest, given that it is part of the election campaign of the official candidate to presidency and incumbent President of Ukraine Petr Poroshenko. He had something to present for the attention of his foreign colleagues: the provocation on November 25, 2018 in the Kerch Strait, and amendments to the Constitution of Ukraine, including a clause on joining NATO and the European Union.

Unlike the amendments to the country’s constitution, which is an internal affair of Ukraine, and a course for joining NATO and the EU, which does not depend on Kiev’s readiness but on the decisions of NATO and the European Union as such, the provocation in the Kerch Strait went off well, providing a good reason for sanctions from the US and the EU, and for anti-Russian rhetoric and politics in general.

Judging by the statements by Ukrainian experts, the outcome of the Munich Conference has received both positive and negative response in Ukraine. What upset Ukraine? That the “Nord Stream 2” Project will go ahead. The fact that the United States will not slap sanctions on Europe in connection with the Project.  The position of Kiev requires a fine balance. Ukraine does not like Trump, but he is the initiator of sanctions against Europeans in connection with “Nord Stream 2”. While Ukraine is committed to European integration, it openly welcomes  sanctions against Europe in connection with “Nord Stream 2” and favors the preservation of the transit of Russian gas through Ukraine, as what they once dubbed as the  “a necessary condition for European integration.” A fairly tricky balance, in which the Minsk Agreements and the Normandy format are no longer visible.

How did the Munich Conference please Ukraine? By the coming sanctions, the so-called “Azov package.” What also pleases Kiev is some coordination between the US and Europe in the expected sanctions package, even if it boils down to just a few restrictions, which is not bad either. Europe has come up with the Azov Package, and sanctions based on the provocation in the Kerch Strait are due from the United States as well. Each of the parties initiating the restrictive measures pursues their own goals. The European Union will impose restrictions in the wake of the incident in the Kerch Strait, but, according to the High Representative of the European Union for Foreign Affairs and Security Policy Federica Mogherini, these sanctions will be exclusively personal ones, targeting  8 individuals.  This constitutes the entire policy of the European Union, which is anti-Russian, and in this the EU strikes a chord with the United States. However,  to spoil relations with Russia beyond repair is not on the agenda, particularly considering the agenda of the EU’s leading country, Germany. Berlin has a joint energy project with Russia – “Nord Stream 2”. Against this background, the “Azov package” from the EU, or in fact, putting a few people on the black list, is but a political and moral compensation for Washington, amid Berlin’s uncompromising position regarding the Nord Stream.

The Azov Package from the US will contain:

-sanctions against FSB agents who, according to the authors of the bill, are involved in the attack on Ukrainian ships in the Kerch Strait in November 2018;

-sanctions against the Russian shipbuilding sector, if Russia violates the freedom of navigation in the Kerch Strait or anywhere else;

-sanctions for supporting projects to develop oil resources in Russia and sanctions against Russian oil projects abroad. “

European sanctions come as a tribute to the anti-Russian mainstream and are used to distract attention from Nord Stream 2. US sanctions reflect technological, political, and economic competition in shipbuilding and oil production. They create a threat to Nord Stream 2, the Northern Sea Route, and the Russian liquefied gas. Coordination of sanctions is currently visible only in their name and reliance on one provocative incident.

Nobody discussed Ukraine’s security at the Munich Conference, the Ukrainian panel was not even on the program. Perhaps, democratic countries, following democratic principles, thereby wanted to establish a democratic distance pending the presidential elections. What is obvious is that the West is interested in the  “Russian aggression” as one of the main components of present-day international politics, while Ukraine provides a good context and a very bright case within the framework of the anti-Russian policies of the West.

First published in our partner International Affairs

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Defense

The world arms sales market

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New data from SIPRI’s Arms Industry Database, released last December, show that arms sales by the world’s twenty-five largest defence equipment and military services companies totalled 361 billion dollars in 2019. This is an 8.5% increase in real terms in arms sales compared to 2018. All this emerged from the studies by the Stockholm-based International Peace Research Institute founded in 1966.

In 2019 the top five arms companies were all based in the United States: Lockheed Martin, Boeing, Northrop Grumman, Raytheon and General Dynamics. These five companies together recorded 166 billion dollars in annual sales. In total, twelve U.S. companies rank among the top 25 for 2019, accounting for 61% of total sales.

For the first time, a Middle East company appears in the top twenty-five. Edge, based in the United Arab Emirates, was established in 2019 from the merger of over twenty-five smaller companies. It ranks twenty-second and accounts for 1.3% of the total arms sales of the top twenty-five companies. This demonstrates that oil revenues in the Near and Middle East are also invested in businesses that produce jobs and money, and are not just accumulated for the personal expenses of the ruling elite. Edge is an example of how high domestic demand for military products and services, combined with the desire to become less dependent on foreign suppliers, is driving the growth of arms companies in the Near and Middle East.

Another newcomer to the top twenty-five list in 2019 was L3Harris Technologies (ranking tenth). It was created by the merger of two U.S. companies that were both in the top twenty-five in 2018, namely Harris Corporation and L3 Technologies.

The top twenty-five list also includes four Chinese companies. Three of them are in the top ten: Aviation Industry Corporation of China (AVIC, ranking sixth), China Electronics Technology Group Corporation (CETC, ranking eighth) and China North Industries Group Corporation (Norinco, ranking ninth).

The combined revenue of the four Chinese companies in the top 25 list, which also includes China South Industries Group Corporation (CSGC, ranking twenty-fourth), grew by 4.8% between 2018 and 2019. Chinese arms companies are benefiting from the People’s Liberation Army’s military modernisation programmes.

Conversely, the revenues of the two Russian companies in the top twenty-five, namely Almaz-Antey and United Shipbuilding, declined between 2018 and 2019, for a combined total amount of 634 million dollars. A third Russian company, United Aircraft, lost 1.3 billion dollars in sales and dropped off the top 25 list in 2019. Domestic competition and reduced government spending on modernising the Russian Navy were two of the main challenges for United Shipbuilding in 2019.

After the United States, the People’s Republic of China recorded the second largest share of 2019 arms sales by the top twenty-five companies, accounting for 16%.

The six Western European companies together account for 18%. The two Russian companies in the ranking account for 3.9%. Nineteen of the top twenty-five arms companies increased arms sales in 2019 compared to 2018. The largest absolute increase in arms sales revenue was recorded by Lockheed Martin: 5.1 billion dollars (11% in real terms). The largest percentage increase in annual arms sales (105%) was reported by French manufacturer Dassault Aviation Group. A strong increase in export deliveries of Rafale fighter aircraft pushed Dassault Aviation into the top 25 arms companies for the first time.

The Sipri report also examines the international presence of the 15 largest arms companies in 2019. These companies are present in a total of 49 countries, through majority-owned subsidiaries, joint ventures and research facilities. With a global presence in 24 countries each, Thales and Airbus are the two most internationalised companies, followed closely by Boeing (21 countries), Leonardo (21 countries) and Lockheed Martin (19 countries).

The United Kingdom, Australia, the United States, Canada and Germany host the largest number of these companies.

Outside the North American and Western European arms industries, the largest number of foreign corporate entities is hosted by Australia (38), Saudi Arabia (24), India (13), Singapore (11), United Arab Emirates (11) and Brazil (10).

There are many reasons why arms companies might want to establish themselves abroad, including better access to growing markets, collaborative arms programmes or policies in host countries that link arms purchases to technology transfers.

Of the 49 countries hosting foreign industries in the top 15 arms companies, seventeen countries are low- and middle-income ones. Southern countries seeking to restart their arms production programmes have welcomed foreign arms companies as a means for benefiting from technology transfers.

Chinese and Russian arms companies in the top 15 list have only a limited international presence. Sanctions against Russian companies and government limits on takeovers by Chinese companies seem to have played a role in limiting their global presence.

All these data were collected by the Sipri Arms Industry Database founded in 1989. At that time, it excluded data for companies in Eastern European socialist countries, including the Soviet Union. The updated version contains 2015 data, including data for companies in the People’s Republic of China and the Russian Federation. An archive of the first one hundred data sets for the period 2002-2018 is available on the Sipri website (www.sipri.org), while for the first twenty-five ones it has been updated with the latest available information.

Arms sales are defined as sales of military goods and services to military customers at national and international levels. Unless otherwise stated, all changes are expressed in real terms. Comparisons (e.g. between 2018 and 2019 or between 2015 and 2019) are based on the groups of companies listed in the respective year (i.e. the comparison is between different groups of companies).

For 2020-2021, Sipri is releasing its dataset on arms sales of the world’s largest companies along with the results of a mapping on the internationalisation of this industry. For this reason, a new dataset was created, including 400 subsidiaries, joint ventures and research facilities linked to the top fifteen arms companies in 2019. Data sources included corporate investment documents, information on company websites, public records and newspaper and magazine articles.

To be included in the mapping, an arms industry must have been active for the majority of its fiscal year, as well as be located in a country other than that in which its parent company is headquartered and also (i) produce military goods or provide military services to military customers; (ii) produce or provide services for dual-use goods to military customers.

This is the first of the key data handovers in view of the publication of the next Sipri Yearbook in mid-2021. Before that, Sipri will release its data on international arms transfers (details of all major international arms transfers in 2020), as well as its data on global military expenditure (comprehensive information on global, regional and national trends in military expenditure). We will inform readers of all this in due course.

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Aman-2021 Naval Exercise: Maritime Diplomacy

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Pakistan has hosted Aman-2021 biannual multi-national naval exercise(Feb.11-16) that has been the focal-point for Indian media particularly due to the significance of this naval drill . The prime disposition of this naval exercise was that, it was conducted in peace times, therefore no country can misperceive the exercise.

Secondly, the objectives of the Aman-2021 are quite clear that;

  • The exercise aims to contribute to regional stability
  • The exercise is a united resolve against the threats of terrorism, piracy and other related threats to maritime domain
  • This exercise is likely to enhance interoperability between the regional as well as extra-regional navies. It also will bridge the gap between regional and extra-regional naval forces to unite against a common threat

Pakistan navy has been remarkable in bringing 45 countries’ naval forces together .Some of the notables are the U.S., Russia, China and Turkey.

All major nations want their influence in the Indian Ocean Region(IOR) due to its strategic chokepoints and the Sea-Lines of Communications(SLOCS) that are vital maritime routes between ports, used for trade ,logistics and naval forces. Indian Ocean is one of the vital global trade arteries accounting for more than 80% of world’s oil shipments passing through this region. This region has world’s fastest growing economies and a home to 2.7 billion population. This region is lucrative market for multinational corporations but rise of Asian economies has got competition with European economies. The IOR is supra-rich in natural resources that is why during colonial times, colonial powers preferred to colonize countries in this region. This region’s natural resources are equivalent to combined with rest of the world. In short, this region is the most significant due to its political, economic, strategic and geological features. That is the primary reason, great powers wish to maintain their influence in the region.

Aman-21 exercise has provided participating countries with an opportunity to demonstrate naval strength. Russia, U.S., and China are largest navies in the world and they are collaborating under on a single platform(Aman-21).Russia’s participation with NATO members makes this naval exercise very special because the former has not done so since the 2011 ‘Bold Monarch’ naval exercise -off the coast of Spain.

All the participating navies are gathering under the slogan “togetherness for peace” and despite having differences between them, some of the countries are uniting to thwart threats to maritime security and stability. Some of the scholars are terming Pakistan navy’s maritime diplomacy as a huge success. As the number of participating countries grew immensely due to the message of peace that Pakistan navy is promoting. Though, the primary objective of the exercise is to counter threats of hybrid warfare, piracy, drug trafficking, arms trafficking, human smuggling, terrorism and climate change.

At the sidelines of the Aman-21, Pakistan navy organized 9th international Maritime Conference (IMC)2021 in Karachi. Advisor to Prime Minister on National Security, Dr.Moeed Yusuf stated “Pakistan’s blue economy has the potential of billions of dollars but it is earning around $200 million from ocean resources.

Pakistan navy aims to contribute more in regional peace and stability by transforming itself into a blue water force equipped with state of the art technology (surface, airborne, submerged, unmanned) to play a greater role in the IOR. Pakistan’s strategically located Gwadar port is in close proximity of the Strait of Hormuz, which is a vital area for world’s developed nations due to oil transit chokepoint and it connects Middle East with South and Central Asia.

India always sees Pakistan’s efforts for promoting regional peace with a greater doubt. India’s relations with Pakistan plummeted after Modi government revoked Article 370 and 35-A, altering Jammu and Kashmir’s autonomous status. Indian media did a lot of propaganda regarding Pakistan’s successful naval exercise. Even one of the Indian magazine The Week captioned “ Pakistan’s navy chief visits Russian warship. worry? “It also claimed that Pakistan’s navy chief Admiral Mohammad Amjad Khan Niazi visited the Admiral Grigorovich. The Admiral Grigorovish is a frigate that has the capability to carry missiles, torpedoes, anti-submarine, anti-air and anti-ship guns. Pakistan’s naval chief was given the tour of weapon system and communication equipment on board the ship. This naval exercise has been an opportunity for navies to demonstrate their professionalism and showcase their weaponry.

As the Aman-21 was concluded Iran and Russia started a two-day naval drill in the northern part of Indian Ocean. India also joined the naval exercise without any proper invitation and due to diminutive participation of Indian navy, it could not make that strategic impact that was thought by India. Now some of the Indian media outlets deny India’s participation in the Iran-Russia naval exercise. India’s efforts to neutralize the strategic impact of Aman-21,evaporated and Aman-21 naval exercised concluded with achieving desired objective of bringing 45 naval forces together under the slogan of “togetherness for peace”. Pakistan’s efforts for promoting regional peace and stability will bear more fruits after the China-Pakistan Economic Corridor’s completion and regional connectivity for collective good.

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Indo-French Bonhomie is Destabilizing South Asia

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India is rapidly increasing its weapons capability in order to threaten and coerce Pakistan so that latter could submit to India’s hegemonic designs. Such hegemonic aspirations not only threaten South Asia’s regional equilibrium but also take entire region to the brink of nuclear brinkmanship. Some of the Western countries are eager to sell their weaponry to India and in particular, France has taken the weapons sale to an entire new level by selling nuclear-capable fighter jets to India. This is unprecedented from a Western country which is also signatory to the Nuclear Nonproliferation Regime (NPT). Selling of such weapons to Modi regime is worrisome not just for South Asia but entire global peace and security.

One of the major contributors to Indian arms buildup is France, which has provided technologically advanced conventional and strategic weaponry to India. India largely depends on foreign assistance to acquire weapons and over the period of a decade, Indo-French defense cooperation has strengthened. It is because both countries have convergence of interests when it comes to strategic policy in the Indo-Pacific region. However, this convergence is destabilizing the South Asian region, and contributing to security challenges for Pakistan.

Indo-French strategic partnership mainly spans in the fields of defense, nuclear and space. In the first week of January 2021, India and France held their annual strategic dialogue, led by Indian National Security Advisor Ajit Doval and Diplomatic Advisor to French President Emmanuel Bonne. It is interesting to see that France is not only following Indian footprints in the Indo-Pacific region but it’s also been vocal about India’s entry into Nuclear Suppliers Group (NSG), a global body which controls global nuclear commerce. France is also at forefront regarding India’s seat at high tables of UN Security Council.

This is ironic and disappointing in the sense as to how a member of civilized world community like France neglects Indian atrocities in the Indian illegally Occupied Jammu and Kashmir (IIJO&K). Indian atrocities in occupied Kashmir are no more a secret. Entire world community condemned PM Modi’s illegal annexation of disputed territory. France reaction was awful to the core. Instead of mediatory role, France called Kashmir as India- Pakistan bilateral issue. France put a blind eye on number of UN Resolutions which clearly state Kashmir as a disputed territory. India has violated those resolutions, but irony lies in the fact that France wants India to be part of very prestigious body whose resolutions means nothing for it.

India’s relationship with France is not confined to one domain of defense; rather it includes energy cooperation, cyber security, space exploration and other areas of strategic convergence. Their strategic partnership also focuses on bilateral cooperation in combating terrorism. It is ironic to note their selective choosing of terrorism. France remains oblivious to India’s state sponsored terrorism in Pakistan and persecution of Kashmiri Muslims. France’s silence on such matters not only put a question mark on its global standing but also shows how countries like France lose moral grounds just for the sake of some economic incentives. This moral bankruptcy is unimaginable and condemnable.

South Asia is a fragile region. Massive arms import and weaponization of India has direct ramification for Pakistan’s security calculous. In order to match increasing conventional superiority with India, Pakistan may be compelled to participate in arms race fueled by countries like France. France’s defense industry and its strategic collaboration with Indian defense firms also pose a serious threat of technological reverse engineering. At the same time, there is no clear indication of end user agreement on French weapons in India. Whether there would be any end-user agreement is yet another question.

There’s no second thought that, France is actively fueling India – Pakistan arms race. India has been buying arms and ammunitions for decades and remains the world’s topmost importers for last many years. Indian imports of weapons from France have risen by 75%, making latter the third largest supplier of arms to India in last 5 years. France is exporting weapon systems to India, which are not only conventional but also have strategic implications. The application of such weapon systems also varies from air to land to sea. This clearly signifies that France is destabilizing the region.

The Indo-French Strategic Partnership is being deepened at the expense of regional balance of of power in South Asia. The already fragile strategic stability in South Asia is under assault from France’s massive arms transfer to a revisionist India. French sale of sophisticated military technology to India, at this scale, is further deteriorating the regional stability and eroding global norms and rules.  There must be an end to this frenzy which is being run in the name of “strategic partnership”. France needs to realize the severity of the situation created by its weapons sale to an aggressor before it gets too late.

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